Wednesday, May 27, 2009

Monitoring Cloud based Revenue Erosion

Over the past few weeks we've been busy preparing for our upcoming Enomaly ECP Cloud Service Provider Edition launch happening June 1st. Recently we've had the chance to speak with a broad group of traditional web hosting and managed data center providers about the opportunities for cloud computing and infrastructure as a service platforms within their existing environments, it's interesting to see how our pitch has evolved.

Lately in order to prove our point, all we need to do is tell the web hosters to monitor any traffic to and from Amazon Web Services. What this AWS traffic represents is revenue leakage or lost revenue opportunities. It has become obvious that for hosting companies the cloud has little to do with efficiency or data center optimization but more to do with recapturing revenue lost to Amazon and other cloud infrastructure providers.

For a data center provider, taking an offlease server and sticking it into a turnkey cloud deployment is low risk and allows for almost instant ROI from a hetrogenenous infrastructure. Throw in our monthly per core pricing model and our cloud platform almost magically pays for itself. Simply, we scale with our hosting customers. Throw in a Cloud App Store and the hosting provider now has several new incrimental revenue opportunties that they had previously never been ability to tap into.

While the media and industry analysts argue about whether cloud computing is real or ready for the enterprise -- what has become certain is that cloud computing is having a real effect on many web hosting firms bottom lines today and if they don't adapt, they're going to be left behind.

So if you're a hosting firm go ahead and start monitoring your network traffic to and from Amazon Web Services -- that's your revenue leaking.
Reblog this post [with Zemanta]

#DigitalNibbles Podcast Sponsored by Intel

If you would like to be a guest on the show, please get in touch.